Collection and recovery process
If tax is left unpaid, there will be a reminder text on the Tax account statement referring to the balance due for payment. The taxpayer will receive no other payment demand or reminder letter.
The tax administration will transfer an unpaid amount to the enforcement authority. This concerns also taxes that the taxpayer has declared in Periodic tax return. No separate decision will be necessary to justify the debiting of this amount.
Payment reminder showing on Statement
If the monthly reconciliation and control process results in a taxpayer’s Tax Account showing a negative balance, there will be a reminder text on the account statement referring to the balance due for payment, and also displaying the late-payment interest calculated up to the following general due date. It is recommendable to pay off the entire balance plus interest as soon as possible, because the final accrual of late-payment interest will immediately stop on the actual date of payment. Taxpayers can make relevant calculations to estimate the total amount owed at Tax Account Online Service (www.vero.fi/verotili) or call 020 697 056 (standard call rate).
If a balance remains unpaid, the tax administration will send two Tax Account statements with payment demand and finally a statement saying that the tax concerned will be removed from Tax Account and transferred to collection. If the taxpayer has previously had obligations transferred to collection and the process is still on-going , the tax administration will no longer send reminders. Instead, the Tax Account statement will include a notice of the date when all unpaid obligations will be removed from Tax Account and be transferred to collection and recovery process.
Notice to persons with secondary liability to tax
If Tax Account continues to have a deficit, the tax administration will also notify the persons carrying secondary liability, i.e. persons legally responsible for the taxes of the original taxpayer. On request by such a person, the tax administration issues a full specification of the accrued unpaid amounts along with instructions for payment.
Removal of obligation from Tax Account
In cases where the Tax Account statement has included a notice saying that unpaid obligations will be removed from Tax Account and be transferred to collection and recovery process, and Tax Account continues to have a deficit, all unpaid amounts of €10 and higher will be removed from Tax Account and transferred to collection. Obligations below €10 will remain in Tax Account, and will be set off against any incoming payments or tax refunds.
Collection and recovery process after removal from Tax Account
If obligations have been entered in Tax Account Statement, but taxpayer has not taken care of them, they can be transferred to the enforcement authority without any other official decision to that effect. Nevertheless, if the amounts have been based on taxpayer-submitted Periodic tax return, a two-week grace period applies. Collection and recovery processes are not immediately started after taxpayer has not paid a tax obligation based on his own declaration in the Periodic tax return. Counting from the date of notice to debtor, a two-week delay will push forward the transfer to enforcement, publication of outstanding debt (protest listing), and inclusion in a bankcruptcy petition. In the case of non-payment, notice to debtor is given either in the form of a Tax Account Statement or as a separate letter.
The tax administration proceeds to collect and recover the Tax Account taxes in the same way as any other tax types that are left unpaid. The most common procedure involves transfer to the local enforcement authority. However, the Tax Administration can also resort to other recovery measures. Having started the recovery of unpaid VAT, payroll withholding tax, and social security contributions, the tax administration can have the taxpayer’s name and the outstanding debt published in mass media (protest listing).
Paying off a tax debt already removed from Tax Account
If the obligation has been transferred to collection and recovery procedures, special methods of payment apply. If taxpayer wishes to pay off an amount already removed, usual Tax Account bank reference numbers or even bank accounts can no longer be used. Instructions for such payments are given at telephone 020 697 056 (standard call rate). If the tax has already been transferred to the enforcement authority, it must be paid to enforcement authority.
Taxpayer in temporary financial difficulties
Instructions to taxpayers for making the necessary arrangements in a situation of financial difficulty are given by telephone 020 697 028 (standard call rate).